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Articles 1 - 9 of 9
Full-Text Articles in Economics
U.S. Monetary Policy: Qe3, Warren Coats
U.S. Monetary Policy: Qe3, Warren Coats
Warren Coats
The Federal Reserve’s latest round of quantitative easing (QE3) is not likely to help the U.S. economy’s recovery, which is already underway, but increases the risks of new asset bubbles and inflation.
Money And Asset Prices With Uninsurable Risks, Nicolas L. Jacquet, Serene Tan
Money And Asset Prices With Uninsurable Risks, Nicolas L. Jacquet, Serene Tan
Research Collection School Of Economics
We develop a model where the coexistence of money and a higher yielding asset is endogenously obtained when no restriction is placed on the use of either object as a medium of exchange. Due to the presence of uninsurable risks, agents have, in equilibrium, di⁄erent relative valuations of the asset to money, and hence, the use of money as a means of payment is strictly preferred. This endogenous di⁄erence in the willingness of agents to use money over the asset implies that money carries a greater liquidity premium than the asset. We obtain that the asset strictly dominates money in …
Vertical Trade, Exchange Rate Pass-Through, And Exchange Rate Regime, Yao Tang, Ke Pang
Vertical Trade, Exchange Rate Pass-Through, And Exchange Rate Regime, Yao Tang, Ke Pang
Economics Department Working Paper Series
We compare the welfare of different combinations of monetary and currency policies in an open-economy macroeconomic model that incorporates two important features of many small economies: a high level of vertical international trade and a prevalent use of a large trade partner's currency as the invoicing currency for both imports and exports. In this environment, a small economy prefers a fixed exchange rate regime over a flexible regime, while the larger economy prefers a flexible exchange rate regime. There are two main causes underlying our results. First, in the presence of sticky prices, relative prices adjust through changes in the …
The Effect Of Treasury Auction Announcements On Interest Rates: 1990-1999, James J. Forest
The Effect Of Treasury Auction Announcements On Interest Rates: 1990-1999, James J. Forest
James J Forest
In this study we examine the secondary-market response of U.S. Treasury interest rates to both the release of pre-auction auction supply announcements and post-auction details from U.S. Treasury auctions during the period of the 1990s. Rate changes are found to differ significantly on auction days. Pre-auction announcements of auction volumes are shown to affect rates significantly, in contrast with the findings of Wachtel and Young (1987) with respect to deficit announcements. We find that surprises in the release of bid-to-cover ratios affect Treasury rates significantly, while the surprises in the volume of noncompetitive bids appears to have little affect on …
The “Impossible Trinity” Hypothesis In An Era Of Global Imbalances: Measurement And Testing, Joshua Aizenman, Menzie David Chinn, Hiro Ito
The “Impossible Trinity” Hypothesis In An Era Of Global Imbalances: Measurement And Testing, Joshua Aizenman, Menzie David Chinn, Hiro Ito
Economics Faculty Publications and Presentations
We outline new metrics for measuring the trilemma aspects: exchange rate flexibility, monetary independence, and capital account openness, taking into account recent substantial international reserve accumulation. Since 2000, the trilemma variables in emerging markets have converged towards intermediate levels, characterizing by managed flexibility, using sizable international reserves as a buffer while retaining some degree of monetary autonomy. We test the linearity of the trilemma, and find that the weighted sum of the three trilemma variables adds up to a constant. Thus, a rise in one trilemma variable should be traded-off with a drop of the weighted sum of the other …
Is Monetary Policy Responsive To External Reserves?: Empirical Evidences From Nigeria, Baba N. Yaaba
Is Monetary Policy Responsive To External Reserves?: Empirical Evidences From Nigeria, Baba N. Yaaba
Economic and Financial Review
The global economy has witnessed extraordinary boost in the accumulation of external reserves, following the Asian financial crisis of the 1990s. External reserves increased sharply from US$1.2 trillion in 1995 to over US$10.0 trillion in January 2012. Developing countries increased their share from 30.0 per cent in 1990 to 67.0 per cent in 2011. Nigeria is not left out in this trend, as external reserves grew from US$5.5 billion in 1999 to US$34.68 billion in March 2012, representing over 530 per cent increase within the period. This placed Nigeria as the 44th largest reserves holder in the world. Reflecting on …
Strong Euro Weakening Dollar: A Potential Economic Demise, Guadalupe F. Garcia
Strong Euro Weakening Dollar: A Potential Economic Demise, Guadalupe F. Garcia
Claremont-UC Undergraduate Research Conference on the European Union
No abstract provided.
2012-2 Milton Friedman's Contributions To Macroeconomics And Their Influence, David Laidler
2012-2 Milton Friedman's Contributions To Macroeconomics And Their Influence, David Laidler
Economic Policy Research Institute. EPRI Working Papers
No abstract provided.
2012-4 Two Crises, Two Ideas And One Question, David Laidler
2012-4 Two Crises, Two Ideas And One Question, David Laidler
Economic Policy Research Institute. EPRI Working Papers
No abstract provided.